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Commvault Announces Fiscal 2017 Fourth Quarter Financial Results

Commvault [NASDAQ: CVLT] today announced its financial results for the fourth quarter and fiscal year ended March 31, 2017.

N. Robert Hammer, Commvault's Chairman, President and CEO stated:

"We concluded our fiscal year with continued business momentum and reported strong financial performance highlighted by record quarterly software revenue of $84.7 million, representing growth of 15% over the prior year quarter and 10% sequentially. All geographic regions contributed to year over year software revenue growth as we continue to expand our new and existing enterprise customer footprint on a global basis.  We believe that we have clearly established a leadership position for modern data management software for larger enterprises to and from the cloud, in the cloud, and cloud to cloud; in hybrid environments; on premises; and in mobile environments.  We continue to see good growth from our stand-alone solution sets driven by virtual, edge and archive.  Better execution from our sales teams as a result of improved sales leadership, structure and staffing, combined with our industry-leading software and services, continue to give us increased confidence as we move into fiscal 2018.  Finally, we remained opportunistic during the fourth fiscal quarter, repurchasing an additional $25 million of our common stock, bringing our full year fiscal 2017 share repurchases to $50 million."

Total revenues for the fourth quarter of fiscal 2017 were $172.9 million, an increase of 8% year-over-year, an increase of 4% sequentially and an increase of 10% on a year-over-year constant currency basis. Software revenue in the fourth quarter of fiscal 2017 was $84.7 million, an increase of 15% year-over-year, an increase of 10% sequentially and an increase of 18% on a year-over-year constant currency basis. Services revenue in the fourth quarter of fiscal 2017 was $88.2 million, an increase of 2% year-over-year, flat sequentially and an increase of 3% on a year-over-year constant currency basis.

For the full fiscal year, total revenues were $650.5 million, an increase of 9% from fiscal 2016. On a constant currency basis, total revenues for the full fiscal year increased 11% over fiscal 2016. Software revenue for the full fiscal year was $296.4 million, an increase of 15% from fiscal 2016. On a constant currency basis, software revenue for the full fiscal year increased 17%. Services revenue for the full fiscal year was $354.1 million, an increase of 5% from fiscal 2016. On a constant currency basis, services revenue for the full fiscal year increased 7%.

On a GAAP basis, income from operations (EBIT) decreased to $2.3 million for the fourth quarter compared to $9.3 million in the same period of the prior year. Non-GAAP income from operations (EBIT) decreased to $21.7 million in the fourth quarter of fiscal 2017 compared to $26.2 million in the fourth quarter of the prior year.

On a GAAP basis, income from operations (EBIT) for the full fiscal year was $0.2 million. Non-GAAP income from operations (EBIT) increased 13% to $75.9 million in fiscal 2017 compared to $67.3 million in fiscal 2016.

For the fourth quarter of fiscal 2017, Commvault reported net income of $3.2 million. Non-GAAP net income for the quarter decreased to $13.7 million, or $0.29 per diluted share, from $16.6 million, or $0.36 per diluted share, in the same period of the prior year.

For the full fiscal year, Commvault reported net income of $0.5 million. Non-GAAP net income for the full fiscal year increased to $48.0 million, or $1.03 per diluted share, from $42.4 million, or $0.91 per diluted share, in fiscal 2016.

Operating cash flow totaled $29.0 million for the fourth quarter of fiscal 2017 which compared to $37.2 million in the fourth quarter of fiscal 2016. For the full fiscal year, operating cash flow was $100.0 million, compared to $84.4 million for fiscal 2016. Total cash and short-term investments were $450.2 million as of March 31, 2017 compared to $387.2 million as of March 31, 2016. During the fiscal fourth quarter, Commvault repurchased $25.0 million of our common stock (0.5 million shares) bringing our fiscal 2017 total repurchases to $50.0 million (1.0 million shares). As of May 3, 2017, there is $125.0 million available under the share repurchase program that currently expires on March 31, 2018. We made no borrowings against our line of credit during fiscal 2017.

A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included. (Download Financial Tables)

An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASC 606"). This standard replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard. Commvault has early adopted ASC 606 as of April 1, 2017, the fiscal year 2018, using the full retrospective method. As a result, Tables V, VI and VII included in this press release includes recast financial information for fiscal 2016 and fiscal 2017.

Recent Business Highlights:

  • On March 8, 2017, Commvault announced it was partnering with Pure Storage and Cisco to help customers enable business critical applications to perform faster, run more efficiently and increase availability through the integration of Commvault's Data Platform for FlashStack, a converged infrastructure solution offered by the two partners. Leveraging Commvault's proven IntelliSnap technology with purpose-built, all flash storage from Pure Storage and with Cisco's Unified Computing System (Cisco UCS) creates an ideal replacement over traditional data management and protection tools that are unable to scale and support critical enterprise applications and databases like Oracle, VMware, SAP, and Microsoft SQL and Exchange, whether physical or virtual.
  • On March 7, 2017, in a nod to Commvault's growing partner ecosystem, CRN®, a brand of The Channel Company, named Ralph Nimergood, Commvault Vice President, Worldwide Channels and Alliances, to its exclusive 2017 list of the 50 Most Influential Channel Chiefs. This marks the third year in a row that Nimergood has been recognized as a CRN Channel Chief, and the second consecutive year that Nimergood has been recognized as one of CRN's 50 Most Influential Channel Chiefs. In calendar year 2016, Commvault grew its business through the VAR community at a double digit rate. Cloud growth was particularly strong and a key component of the company's revenue, with more than 90 percent of all enterprise deals involving cloud.
  • On February 28, 2017, Commvault announced that Australia's biggest property data provider was leveraging Commvault Software to drive the company's digital business model into the cloud. CoreLogic is the leading property and data analytics provider in Australia and New Zealand, and is transforming how it manages 600 data sources and a one-petabyte-per-day customers data workloads, and modernizing its 40-year-old data infrastructure. CoreLogic's disaster recovery strategy will be provided as a service on Commvault's Data Platform, releasing resources into higher-value areas of its customer's business and accelerating the shift from rigid tape backups to more agile processes.
  • On February 21, 2017, at HIMMS17, the healthcare industry's preeminent conference and exhibition, Commvault announced accelerating demand for its Commvault Data Platform with strong adoption among healthcare providers and organizations since the formation of its healthcare solutions group. At the conference, the company highlighted healthcare customers that are delivering higher quality, lower cost care by better protecting, controlling and extracting value from their EHR, imaging, financial and other enterprise data. Commvault also announced new partnerships with CloudWave and Harmony Healthcare IT, a technical achievement with TeraRecon, and a new IDC white paper on how healthcare organizations can use holistic data management to create a competitive advantage.
  • On January 23, 2017, Commvault launched new reference architectures for Amazon Web Services (AWS), to provide enterprises with guidance on how the Commvault Data Platform can help organizations optimize their use of the AWS Cloud for backup, archive and recovery. Commvault also announced that existing customers can apply their licenses to applications enabled through AWS Marketplace. Additionally, customers will have the ability to easily direct data storage to specific AWS services - such as Amazon Simple Storage Service (Amazon S3), Amazon S3 Standard - Infrequent Access (Amazon S3-IA) and Amazon Glacier. The use of the Commvault Data Platform with the AWS Cloud delivers a powerful unified platform that simplifies data management wherever data is -- on-premises, the AWS Cloud, or mobile -- while reducing costs and risks.
Published Wednesday, May 03, 2017 9:13 AM by David Marshall
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